www.zerohedge.com by TYLER DURDEN
I’ve been quietly watching the BTC market figure out how to explain why BTC is profoundly positive for society. I’ve been disappointed with the attempts I’ve seen and so I’ve decided to throw my hat in the ring.
First we should define currency strength, which so many erroneously suggest is measured against other currencies as with DXY (a dollar index measuring USD conversion rates against a basket of currencies). Measuring a currency strength relative to other currencies is akin to a group of stage 4 cancer patients arguing who among them is the strongest. The reality is they were all stronger prior to their cancer.
As with each cancer patient, their strength is not meaningful as a relative measure outside of themselves. It’s only meaningful as a measure relative to themselves on a historical basis. That is, are they stronger today than they were last month. In the real world to real people, currency strength too is a historical concept based on purchasing power. Since I only purchase things in USD I don’t care how much I could purchase using Sterling. I only care if I can purchase more today than I could yesterday in USD. That brings me to the point of the article – aggregate net purchasing power, also known as, wealth and the impact of currency…
